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Need To Know: The Consensus Just Cut Its Insmed Incorporated (NASDAQ:INSM) Estimates For 2021

Simply Wall St
·2 min read

Market forces rained on the parade of Insmed Incorporated (NASDAQ:INSM) shareholders today, when the analysts downgraded their forecasts for next year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the most recent consensus for Insmed from its seven analysts is for revenues of US$239m in 2021 which, if met, would be a huge 42% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$268m in 2021. It looks like forecasts have become a fair bit less optimistic on Insmed, given the measurable cut to revenue estimates.

View our latest analysis for Insmed

earnings-and-revenue-growth
earnings-and-revenue-growth

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Insmed's revenue growth will slow down substantially, with revenues next year expected to grow 42%, compared to a historical growth rate of 67% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 21% next year. Even after the forecast slowdown in growth, it seems obvious that Insmed is also expected to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Insmed next year. Analysts also expect revenues to grow faster than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Insmed after today.

Unanswered questions? At least one of Insmed's seven analysts has provided estimates out to 2024, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.